Maharashtra has once again emerged as India’s leading sugar-producing state, but the latest recovery in output also highlights growing concerns over sugarcane availability, water resources, crop yields and utilisation of sugar industry capacity. During the 2025-26 sugar season, Maharashtra crushed around 1,044.21 lakh tonnes of sugarcane and produced 99.20 lakh tonnes of sugar, moving ahead of Uttar Pradesh, which produced approximately 89 lakh tonnes. The recovery comes after a sharp decline in Maharashtra’s sugar production during the drought-affected 2024-25 season.
The state's sugar production has witnessed significant fluctuations over the past five seasons. Maharashtra produced a record 137.28 lakh tonnes of sugar in 2021-22, but output fell to 80.76 lakh tonnes in 2024-25 amid severe drought conditions. Production subsequently recovered to 99.20 lakh tonnes in 2025-26. The wide variation underlines the sugar industry's dependence on monsoon performance, irrigation availability and regional water conditions.
The key challenge for Maharashtra's sugar sector is therefore not only its installed milling capacity but also the ability to ensure a stable supply of sugarcane year after year. The expansion of sugar mills, ethanol distilleries and cogeneration projects has increased processing and bioenergy capacity across the state. However, the availability of cane depends heavily on rainfall, irrigation and groundwater resources, raising questions over how efficiently the existing infrastructure can be utilised during weaker crop years.
Sugarcane accounts for roughly 5–6% of Maharashtra's gross cropped area, up from around 4% a decade ago, while various assessments have estimated that the crop consumes a substantial share of irrigation water. Several important cane-growing regions are also located in drought-prone and water-stressed areas. Marathwada accounts for nearly one-fourth of the state's sugarcane area, with districts such as Latur and Dharashiv frequently facing water scarcity.
Water-use efficiency remains another major concern for the sugar industry. Only around 35% of Maharashtra's sugarcane area is estimated to be under micro-irrigation systems such as drip irrigation, despite efforts to promote water-saving technologies. Greater adoption of drip irrigation, improved cane productivity and better water management could therefore play a critical role in reducing the sector's vulnerability to erratic rainfall.
Maharashtra's return to the top of India's sugar production table demonstrates the state's strong recovery, but the five-year production trend also highlights the need for a more resilient sugar economy. For sugar mills, farmers and policymakers, the focus is increasingly shifting from expanding installed capacity to ensuring dependable sugarcane supply, efficient water use, higher farm productivity and optimum utilisation of sugar and bioenergy infrastructure.
